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Greening transportation fleets: Insights from a two-stage game theoretic model

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  • Bae, Sang Hoo
  • Sarkis, Joseph
  • Yoo, Chung Sik

Abstract

The greening of organizational transportation fleets, especially trucks and automobiles, has gained increasing attention by companies in a variety of industrial sectors. The reasons for this concern and attention are due to regulatory and competitive pressures, but also increasing costs of fossil-fuels. Surprisingly the amount of research and modeling for fleet management overall has been rather limited, with the focus on managing green vehicle investments virtually non-existent. In this study we develop a two-stage game theoretic model that helps evaluate, from both policy and organizational perspectives, the implications of greening of transportation fleets. Various parameters are evaluated including factors such as innovations in green vehicle technology, levels of service differences, cost of fuel, adjusting tax policy, regulatory compliance requirements, and adaptation costs. This evaluation provides practical insights into actions that could be considered by regulators and organizations to encourage environmental investments.

Suggested Citation

  • Bae, Sang Hoo & Sarkis, Joseph & Yoo, Chung Sik, 2011. "Greening transportation fleets: Insights from a two-stage game theoretic model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 793-807.
  • Handle: RePEc:eee:transe:v:47:y:2011:i:6:p:793-807
    DOI: 10.1016/j.tre.2011.05.015
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    4. Azadi, Majid & Shabani, Amir & Khodakarami, Mohsen & Farzipoor Saen, Reza, 2015. "Reprint of “Planning in feasible region by two-stage target-setting DEA methods: An application in green supply chain management of public transportation service providers”," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 74(C), pages 22-36.
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    8. Chávez, Marcela María Morales & Sarache, William & Costa, Yasel, 2018. "Towards a comprehensive model of a biofuel supply chain optimization from coffee crop residues," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 116(C), pages 136-162.
    9. Asghari, Mohammad & Mirzapour Al-e-hashem, S. Mohammad J., 2021. "Green vehicle routing problem: A state-of-the-art review," International Journal of Production Economics, Elsevier, vol. 231(C).
    10. Chen, Shang-Yu, 2016. "Green helpfulness or fun? Influences of green perceived value on the green loyalty of users and non-users of public bikes," Transport Policy, Elsevier, vol. 47(C), pages 149-159.
    11. Barfod, Michael B. & Kaplan, Sigal & Frenzel, Ina & Klauenberg, Jens, 2016. "COPE-SMARTER – A decision support system for analysing the challenges, opportunities and policy initiatives: A case study of electric commercial vehicles market diffusion in Denmark," Research in Transportation Economics, Elsevier, vol. 55(C), pages 3-11.
    12. Chen, Xu & Wang, Xiaojun, 2016. "Effects of carbon emission reduction policies on transportation mode selections with stochastic demand," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 90(C), pages 196-205.
    13. Tang, Ailie K.Y. & Lai, Kee-hung & Cheng, T.C.E., 2016. "A Multi-research-method approach to studying environmental sustainability in retail operations," International Journal of Production Economics, Elsevier, vol. 171(P3), pages 394-404.
    14. Morteza Yazdani & Sarfaraz Hashemkhani Zolfani & Edmundas Kazimieras Zavadskas, 2016. "New integration of MCDM methods and QFD in the selection of green suppliers," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 17(6), pages 1097-1113, November.
    15. Li, Hui-Chieh, 2015. "Optimal delivery strategies considering carbon emissions, time-dependent demands and demand–supply interactions," European Journal of Operational Research, Elsevier, vol. 241(3), pages 739-748.
    16. Kaplan, Sigal & Gruber, Johannes & Reinthaler, Martin & Klauenberg, Jens, 2016. "Intentions to introduce electric vehicles in the commercial sector: A model based on the theory of planned behaviour," Research in Transportation Economics, Elsevier, vol. 55(C), pages 12-19.
    17. Samuel Pelletier & Ola Jabali & Gilbert Laporte, 2016. "50th Anniversary Invited Article—Goods Distribution with Electric Vehicles: Review and Research Perspectives," Transportation Science, INFORMS, vol. 50(1), pages 3-22, February.
    18. Azadi, Majid & Shabani, Amir & Khodakarami, Mohsen & Farzipoor Saen, Reza, 2014. "Planning in feasible region by two-stage target-setting DEA methods: An application in green supply chain management of public transportation service providers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 70(C), pages 324-338.
    19. Konur, Dinçer, 2014. "Carbon constrained integrated inventory control and truckload transportation with heterogeneous freight trucks," International Journal of Production Economics, Elsevier, vol. 153(C), pages 268-279.

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